CLI Economic Sustainability

CHILD LEGACY INTERNATIONAL CHILD LEGACY MALAWI CAMPUS ECONOMIC SUSTAINABILITY PLAN

A D E TA I L E D I N T R O D U C T I O N P R E PA R E D FO R

PA RT N E R S & STA K E H O L D E R S

OUR MISSION IS TO BUILD SUSTAINABLE COMMUNITIES IN AFRICA, WHERE HOPE THRIVES AND LEGACIES OF OPPORTUNITY ARE CREATED

BREAKING THE GENERATIONAL CYCLE OF POVERTY.

G o d h a s p rov i d e d u s t h e o p p o r t u n i t y a n d t h e responsibility to improve the lives of millions of Africans, and to create a model of development that can be

replicated by others to improve the lives of millions more.

ILD COYNAL CH EGERANATI LINT

IL ACIONAL H C EGERNAT LINT CHILD ILDACTIOYNAL H LEGACY C EGERNA INTERNATIONAL LINT

TABLE OF CONTENTS

Intro to Malawi & Child Legacy International (CLI)

1

Child Legacy’s Holistic Approach

2

Intro to Sustainable & Integrated Agriculture (SIA)

3

CLI Malawi Campus Map: SIA Detail

4

SIA Financial Overview & Projection- 2019-2026

5

SIA Spotlight: Commercial Macadamias

6

SIA Spotlight: Commercial Giant Bamboo

7

SIA Spotlight: Fundamental Farming

8

Child Legacy Hospital Impact Summary

9

Campus Map: CLI Hospital Detail

10

Child Legacy Financial Sustainability Timeline

11

CLI Campus Overview

12

Endorsements of Child Legacy

13

Leadership & Contact

14

TABLE OF CONTENTS

i

MALAWI:

A CO U N T RY O F D E S P E R AT E CH A L L E N G E S • Population: 19.2 Million • 62% live on less than $1 per day • Over 85% live in densely populated rural villages • Less than 1% of rural people have access to electricity • 2.4 million without access to clean drinking water • 47% of children are stunted from malnutrition • Average birthrate is 5 children per woman • Lifetime risk of Maternal Mortality: 1 in 29 • Less than 1 physician and 16 nurses per 100,000 rural people • Less than 25% of deaths are o cially registered

CHILD LEGACY:

A MO D E L O F H O P E & T R A N S F O R MAT I O N F O R R U R A L A F R I CA • Founded by Je & Karen Rogers in 1987, CLI moved primary operations from Zimbabwe to Malawi in 2007 • 100% Malawian sta across all positions including physicians and administration personnel • Our main campus is located in the middle of rural Malawi • CLI Church has grown to over 250 in weekly attendance; our congregation, discipleship activities, and ministry outreach programs continue to grow • Our Hospital is the only Community Hospital in Southern Africa that is 100% powered by wind & solar energy

LEGEND: CLI MALAWI CAMPUS OVERVIEW CLI Property Line (533 Acres) Hospital (85,000 FT 2)

• Nationwide Well Repairs provided year-round • CLI’s Sustainable Agriculture is irrigated to grow food for the community and to train local farmers to improve their harvests & yield; commercial endeavors to mature by 2025

Sustainable Agriculture (200+ Acres) Ponds: Aquaculture & Water Storage CLI Church

• Our Hospital provides free high-quality Maternal services, from prenatal checkups to full Labor & Delivery

CLI Preschool

• Our Hospital is a nationally registered Continuing Professional Development training facility

Guest Housing

Staff Housing

Renewable Energy Powerhouses

ffi

ff

ff

INTRODUCTION: MALAWI & CHILD LEGACY

01

CHILD LEGACY’S HOLISTIC APPROACH

Child Legacy has one extraordinary goal: Break the generational cycle of poverty.

participation. Lacking these necessities, it is impossible to

F U L L E MP L O YME N T

clean water, nutrition, basic healthcare, education, protection, and

EDUCATIO N & TRAINING

living in absolute poverty lack access to fundamental human rights:

Q U A L I TY HEA LTHCA RE

People

CL EA N ENERG Y

sustainable development to eliminate absolute poverty.

CL EA N WATER

We deploy a Holistic Approach, utilizing multiple “pillars” of

PRO PER NUTRITIO N

SUSTAINABLE DEVELOPMENT

experience any quality of life, or to create a better opportunity for one’s children.

The generational cycle of poverty is devastating.

We intend to bring change.

The “pillars” metaphor illustrates the interconnected, equally required nature of CLI’s multifaceted work. Pillars require a strong foundation to provide load-bearing support to a structure; but a pillar standing on its own is simply an ornamental monument. Each pillar provides the load-bearing support for the structure of sustainable development. A single pillar cannot end absolute poverty. A weak pillar creates additional stress on the others, jeopardizing the stability of the entire structure.

Structurally sound sustainable development will break the generational cycle of poverty.

CLI’S HOLISTIC APPROACH

02

SUSTAINABLE & INTEGRATED AGRICULTURE (SIA) The goal of our Sustainable & Integrated Agriculture (SIA) program is 100% financial sustainability for the CLI Hospital within the next five years.

200 acres of diverse crops, 15 large ponds, access to water sources and two new commercial endeavors will help us reach this goal, provided we can raise short-term funding now. Our holistic approach is implemented throughout all SIA activities, to benefit and strengthen the community, the environment, the economy, and the institution itself.

THE COMMUNITY

THE ENVIRONMENT

PROVIDE EMPLOYMENT, AGRICULTURAL TRAINING, EDUCATION, & IMPROVED NUTRITION TO THE RURAL POOR POPULATION WE SERVE IN MALAWI

PROMOTE AND UTILIZE ENVIRONMENTAL FARMING PRACTICES, IMPROVE LOCAL SOIL HEALTH, REDUCE WASTE, AND COMBAT DEFORESTATION

✦ Over 150,000 nutritious meals provided annually with

✦ Crop rotation & intercropping improve soil and nutrition

>80% ingredients produced on CLI Campus

density of CLI’s harvests exponentially each year

✦ Over 100 employees within SIA program, all from the

✦ Thousands of native trees planted each year throughout

surrounding rural villages; providing stable full-time employment and income to underserved communities

rural communities to reduce carbon footprint, improve air quality, and promote reforesting

✦ Quarterly workshops that train local farmers how to

✦ Commercial Bamboo to produce sustainable charcoal

scale & implement CLI’s methods for more resilient crops that produce improved & larger harvests

briquettes, to combat deforestation by replacing the wood used daily by locals

THE INSTITUTION

THE ECONOMY

INCREASE CLI SELF-RELIANCE BY PRODUCING GOODS AND MANAGING RESOURCES DIRECTLY UPON CLI’S MALAWI CAMPUS

GENERATE INCOME TO FINANCIALLY SUSTAIN MALAWI OPERATIONS, PRIMARILY THE ESSENTIAL HEALTHCARE SERVICES AT CLI HOSPITAL

✦ Production & integration across all activities reduces

✦ Organic produce, herbs, dairy, and fowl sold to “ex-pat”

CLI’s dependence on the unstable national supply chain

✦ Over $160,000 of internal value generated each year — from sta

meals to crop fertilizers to water security

✦ SIA operations are 100% internally managed and maintained to keep the highest standards

restaurants & hotels in the capitol city at premium price

✦ Upon maturation, SIA’s commercial macadamia & bamboo will account for signi cant future revenue

✦ SIA activities projected to be net positive by Q4 2023; bringing nancial sustainability to CLI Hospital by 2025

fi

fi

ff

INTRODUCTION TO SIA

03

LEGEND: 2019 CLI MALAWI CAMPUS OVERVIEW

DETAIL LEGEND: SUSTAINABLE AGRICULTURE

CLI Property Line (533 Acres) Hospital (85,000

1 CLI Church Farm 2 Commercial Gardens & Food Forest

FT2)

Sustainable Agriculture (200+ Acres)

3 Commercial Produce Greenhouses

Ponds: Aquaculture & Water Storage

4 Irrigated Macadamia Trees (2019 lot)

CLI Church

5 Irrigated Macadamia Trees & Staple Crops

CLI Preschool

6 Commercial Giant Bamboo

Sta

7 Hen Houses (egg production/IGA)

Housing

8 Fish Spawning Ponds

Guest Housing

9 Fish Growth & Water Storage Ponds

Renewable Energy Powerhouses

10 Shallow Raceways Ponds 11 Irrigation Water Storage Ponds

7

9

5

8 9 2

9 1

10 3

4

11

6

ff

CLI MALAWI CAMPUS OVERVIEW

04

SUSTAINABLE & INTEGRATED SUSTAINABLE & INTEGRATED AGRICULTURE 2019-2026 AGRICULTURE 2019-2026 of SIA Programs’ Total Expense, Internal Overview of SIA Programs’ TotalOverview Expense, Internal Value**, Cash Revenue, and Net IncomeValue**, Cash Revenue, and Net Income

-$130,400

‣ Higher Fundamental Farming expense & income due to Commercial Henhouses ‣ 1,000 Macadamia seedlings are planted

LEGEND

-$31,400 -$31,400

2019

2019

-$188,600

S I A N E T I N CO M E :

$168,000

FUNDAMENTAL EXPENSE

$121,000

MACADAMIA EXPENSE

2024 2025 2026

-$42,600

S I A N E T I N CO M E :

$221,900 S I A N E T I N CO M E :

$366,400 S I A N E T I N CO M E :

$520,500 S I A N E T I N CO M E :

$591,800

‣ First harvest of Macadamia trees is expected Q1-Q2; bulk sale in Q3-Q4 ‣ First harvest of Giant Bamboo expected Q1; sale of charcoal briquettes in Q2 ‣ SIA becomes the first of CLI’s four cardinal programs to be 100% profitable ‣ SIA program generates >$200,000 in revenue to begin offsetting CLI Hospital expense ‣ Over two-thirds of Giant Bamboo has matured, enabling rapid regeneration for annual harvesting ‣ SIA program income surpasses $500,000 ‣ Commercial Macadamia sales account for significant portion of SIA’s income ‣ CLI Hospital becomes 100% financially sustainable from income generated on CLI’s Campus ‣ 100% of SIA’s Commercial Macadamia & Bamboo are fully mature & productive ‣ SIA program revenue surpasses one half million dollars annually

2020

BAMBOO EXPENSE

-$81,400

INTERNAL VALUE**

$172,000

>90% FUNDAMENTAL FARMING

FUNDAMENTAL REVENUE

2021

‣ Fundamental Farming accounts for 100% of internal value generated 2019-2021

-$68,900

$30,700

-$83,400

-$31,400 -$31,400

MACADAMIA REVENUE

$172,000

BAMBOO REVENUE

$30,700

-$83,400

2022

S I A N E T I N CO M E :

‣ All SIA staff provided 15% cost of living wage increase

-$32,800 -$31,400 $173,500 $5,000

$30,700 $69,300

-$89,400

2023

2023

-$115,500

‣ Installation of irrigation system is completed

2024

2022

S I A N E T I N CO M E :

‣ 3,000 Macadamia seedlings are planted

-$78,000

2025

2021

-$197,600

‣ Commercial Henhouses close Q1 due to market flooding with eggs

2026

2020

S I A N E T I N CO M E :

-$32,800

-$40,500

$175,000

$32,200

-$94,000

$302,400

$50,000

-$37,600 -$43,700 $181,000

$32,200

-$99,100

$409,500

$100,000

-$55,300 -$49,300 $184,000

$38,700

-$104,700

$535,500

$150,000

-$66,700 -$55,500 $186,000

$38,700

$630,000

ILD COYNA CH EGERANATI LINT

ILD COYNAL CH EGERANATI LINT **NOTE ON INTERNAL VALUES: FiguresFigures represent all products grown/produced on CLI campus andcampus utilized and internally rather than buying CHILD **NOTE ON INTERNAL VALUES: represent all products grown/produced on CLI utilized internally rather than AL ILDACOYNlocally in Malawi.

Internal values are based on are localbased average cost of market each product in each amount produced and utilized on CLI’s LEGACY buying locally in Malawi.

Internal values on market local average cost of product in amount produced andcampus. utilized onSIA FINANCIAL OVERVIEW CH EGERNATI See Fundamental INTERNATIONAL SIA FINANCIAL OVERVIEW (p8) for more information onmore CLI’sinformation produced goods with their internal uses and values.

LINT CLI’s campus.Farming See Fundamental Farming (p8) for on CLI’s produced goods with their internal uses and values.

$150,000

06 05

SIA SPOTLIGHT: COMMERCIAL MACADAMIAS W H Y W E ’ R E I N V E ST I N G I N M AC A DA M I AS

MACADAMIA TREE GROWTH FROM SEEDLING TO MATURITY

✦ The global macadamia market is projected to grow at a CAGR of 6.8% during 2020-2025 ✦ Developing healthy eating habits have led people to incorporate more nuts into their diets. This has caused the Macadamia market to grow at a faster rate than previously forecasted ✦ Macadamia trees provide intercropping advantages for CLI’s other local cash crops (ie co ee) while improving soil fertility and harvests

SEEDLING

YEARS 1-2

✦ The demand for Macadamias outpaces world-wide supply creating an signi cant economic opportunity for CLI

C H I L D L E G ACY ’ S M AC A DA M I A FA R M YEAR

OPERATING EXPENSE

2019 Lot (1k trees)

2020 Lot (3k trees)

Total Harvest (kgs)

Sales Revenue

NET INCOME

2019

-$31,400.00

0

0

0

$0.00

-$31,400.00

2020

-$68,900.00

0

0

0

$0.00

-$68,900.00 -$32,835.00

2021

-$32,835.00

0

0

0

$0.00

2022

-$32,835.00

11,000

0

11,000

$69,300.00

$36,465.00

2023

-$37,550.00

15,000

33,000

48,000

$302,400.00

$264,850.00

2024

-$45,687.00

20,000

45,000

65,000

$409,500.00

$363,813.00

2025

-$55,349.00

25,000

60,000

85,000

$535,500.00

$480,151.00

Campus. Gala Macs will purchase 100% of CLI’s

2026

-$66,747.00

25,000

75,000

100,000

$630,000.00

$563,253.00

annual Macadamia harvests to process & export

YEARS 5+

ILDACIOYNAL H OUR COMMERCIAL C EGERNAT PARTNERSHIP LINT CHILD ILDACTIOYNAL H LEGACY C EGERNA INTERNATIONAL LINT

ILD COYNAL CH EGERANATI LINT

CHILD LEGACY MSUNDWE CAMPUS, FARM, & COMMUNITY HOSPITAL

YEARS 3-4

G ala Macs is an established commercial Macadamia farm located 10 miles from CLI

under their label.

✦ 4,000 Macadamia Trees planted on CLI Campus in 2019 (1,000 trees) & 2020 (3,000 trees)

GALA MACS NAMITETE FA R M & C O M M E R C I A L PROCESSING PLANT

✦ Seedlings require 3-5 years of growth before bearing fruit ✦ Partnership with well-established commercial farming operation located 10 miles from CLI Campus (Gala Farms)

MACADAMIA NUT COMMERCIAL PROCESSING FOR EXPORT

✦ Initial smaller harvests beginning as early as Q4 2021; rst full harvest of all 4,000 Macadamia trees expected by Q4 2023. Nut sales will bring the entire SIA program into net positive revenue by year end ✦ Macadamia nut sales will produce signi cant future income, fueling projected nancial sustainability for CLI Hospital by 2025 WHOLE MACADAMIA NUT

GALA MACS’ PROCESSING PLANT

MACADAMIA NUT EXPORT PREP

fi

fi

ff

fi

fi

SIA SPOTLIGHT: COMMERCIAL MACADAMIAS

06

SIA SPOTLIGHT: COMMERCIAL GIANT BAMBOO GIANT BAMBOO CULTIVATION: SEEDLING TO HARVEST

W H Y W E ’ R E I N V E ST I N G I N G I A N T B A M B O O ✦ The Malawi has the 4th highest rate of deforestation on the planet ✦ Over 96% of Malawi’s 19M residents depend on fuelwood for cooking ✦ The devastating rate of deforestation has resulted in increased climate-warming emissions, disrupted watersheds (leading to catastrophic ooding during rainy seasons) and reduced biodiversity

YEAR 0-1: SEEDLING

YEAR 5+: ANNUAL HARVEST

YEAR 2-4: INITIAL GROWTH

YEARS 5-80

✦ Giant Bamboo is a rapidly renewable source of fuelwood and timber.

The massive woody stalks also sequester carbon from the environment to curb climate change

GIANT BAMBOO GROWTH RATE FIVE YEARS TO REACH MATURITY, THEN FULL REGENERATION EACH YEAR FOR ENTIRE LIFECYCLE

YEAR 4

C H I L D L E G ACY ’ S G I A N T B A M B O O FA R M YEAR

YEAR 3

YEAR 2

YEAR 1

OPERATING EXPENSE

# of Giant Bamboo Harvested

Sales Revenue

NET INCOME

2019

-$31,400.00

0

$0.00

-$31,400.00

2020

-$81,400.00

0

$0.00

-$81,400.00

2021

-$31,400.00

0

$0.00

-$31,400.00

2022

-$31,400.00

1,000

$5,000.00

-$26,400.00

2023

-$40,500.00

15,000

$50,000.00

$9,500.00

2024

-$43,700.00

20,000

$100,000.00

$56,300.00

2025

-$49,300.00

25,000

$150,000.00

$100,700.00

2026

-$55,500.00

25,000

$150,000.00

$94,500.00

✦ 20,000 Giant Bamboo stalks planted across CLI’s Campus ✦ The type of Giant Bamboo planted at CLI, Dendrocalamus asper, is a non-invasive species harvested annually for entire lifecycle (80+ years)

CHILD LEGACY’S GIANT BAMBOO PRODUCTS

✦ First harvest of Giant Bamboo expected 2022, with all 20,000 plants reaching peak production by 2025 ✦ Leftover material from Giant Bamboo harvests (thin twigs, leaves, etc) are easily processed into Biochar, utilized to produce livestock feed and integrated into composts to increase crops’ nutrient retention

BAMBOO CHARCOAL

BAMBOO BRIQUETTES

BAMBOO FUELWOOD

✦ CLI will perform the minimal processing required to turn harvests into products of fuelwood, timber, and charcoal briquettes to sell to local businesses and families

fl

SIA SPOTLIGHT: COMMERCIAL GIANT BAMBOO

07

SIA SPOTLIGHT: FUNDAMENTAL FARMING WHY WE INVEST IN FUNDAMENTAL FARMING ✦ Malawi is one of the poorest and least developed countries in the world. It is a landlocked country with minimal infrastructure and an inconsistent supply chain ✦ Over 85% of the population live in rural areas. Less than 1% have access to electricity and households exist on less than $1 per day. Most families farm on small plots of land ✦ Fundamental Farming allows Child Legacy to produce consistent crops; to generate internal income; to provide employment opportunities to unskilled locals, and to train farmers how to raise better crops

Co-Founder & CEO Jeff Rogers advising a netting of tilapia. 14 ponds supply marketable fish, water security, & fertilizer

Fundamental Farming intensive workshops train farmers how to create larger, more resilient and nutritious harvests

Fundamental Farming grows organic produce, herbs, and dairy to fulfill weekly orders from restaurants and hotels

Turkeys & ducks raised for meat are sold to “ex-pats”. Droppings provide nitrogen for crop soil and the birds control pests

Our commercial maize-mill provides farmers a tool to improve their food storage & market sales at affordable prices

We provide over 150,000+ nutritious meals to staff, visitors, & patients every year. Over 85% of the ingredients are produced on-site

C H I L D L E G ACY ’ S F U N DA M E N TA L FA R M I N G YEAR

OPERATING EXPENSE

Sales Revenue

NET INCOME CASH ONLY

Internal Value

NET INCOME CASH & VALUE

2019

-$188,600.00

$121,000.00

-$67,600.00

$168,000.00

$100,400.00

2020

-$78,000.00

$30,700.00

-$47,300.00

$172,000.00

$124,700.00

2021

-$83,400.00

$30,700.00

-$52,700.00

$172,000.00

$119,300.00

2022

-$83,400.00

$30,700.00

-$52,700.00

$166,000.00

$113,300.00

2023

-$89,400.00

$32,200.00

-$57,200.00

$160,000.00

$102,800.00

2024

-$94,000.00

$32,200.00

-$61,800.00

$160,000.00

$98,200.00

2025

-$99,100.00

$38,700.00

-$60,400.00

$160,000.00

$99,600.00

2026

-$104,700.00

$38,700.00

-$66,000.00

$160,000.00

$94,000.00

✦ Over 60 acres of staple crops utilizing environmentally sustainable methods to produce healthier soil, larger harvest yields, and more resilience during periods of adverse weather and/or climate changes (ie, droughts) ✦ 9 large tilapia sh ponds that double as water reservoirs for dry season. 6 shallow “raceway” ponds to encourage rapid growth for marketable tilapia and cat sh ✦ Livestock and fowl are raised for marketable meat and dairy products.

Organic produce gardens and herbs/micros are sold to restaurants ✦ Products from all Fundamental Farming activities provide internal value and supply consistent resources such as fertilizers, livestock feed and nutritious meals for sta and patients

ff

fi

fi

SIA SPOTLIGHT: FUNDAMENTAL FARMING

08

CLI HOSPITAL: HIGHLIGHTS & IMPACT H O S P I TA L K E Y E V E N TS & H I G H L I G H TS ✦ Registered the nation’s rst Community Hospital powered by 100% renewable energy. Our hospital is the only certi ed hospital of its kind in the 16 nations of SADC (Southern African Development Community) ✦ We provide over 50,000 Malawians with high-quality healthcare each year. Over 85% of the population lives in rural villages, yet other hospitals remain concentrated in urban areas only

Malawi has one of the highest maternal mortality rates in the world. CLI Hospital over 7,000 safe deliveries with ZERO deaths

CLI Hospital’s strong foundation of trust with our communities has resulted in the highest patient-followup rates in the nation

✦ Established collaboration and strong relationships with the Malawi Government’s Ministry of Health (MoH) and multiple international institutions and universities. Partnership with Christian Health Association of Malawi (CHAM) anticipated in 2021

H O S P I TA L O P E R AT I O N S S U M M A RY TOTAL PATIENT VOLUME TO MAY 2021 TOTAL # TO DATE

AVERAGE # MONTHLY

TOTAL SERVICES

500,000+

4,800

Total volume of all health services

OUTPATIENT CLINIC

285,000+

2,250

Visits for illnesses, injuries, optometry, etc

MATERNAL NEWBORN & CHILD HEALTH SERVICES

153,000+

2,550

Family Planning, Antenatal, Postnatal, Immunizations, Maternity, L&D (L&D est. Q3’15)

CATEGORY

Our staff travels to remote villages to provide immunizations and basic care to women and children unable to reach CLI Hospital

Women who deliver at CLI Hospital and return for infant one-week checkup receive a fruit tree from CLI’s farm to plant at home

✦ 65,000+ ft2 Hospital Facilities ‣ Includes CLI’s Research, Education, and Innovation Center (aka REDIN Center) ‣ See CLI Hospital’s Summary of Facilities and Supporting Infrastructure (p10) for details

NOTES

✦ $60,000/mo Avg. Operating Cost ‣ 75% Human Resources for Health ‣ 15% Drugs & Consumables ‣ 10% Capital & Maintenance

✦ 80+ Full-Time Employees at CLI Hospital (100% Malawian Sta ) ‣ 6 Medical Senior Management - 1 PhD/MBA (Director of Healthcare) - 1 Physician (Chief of Medicine) CLI Hospital processes over 1,900 laboratory tests each month, including HIV with viral load count & malaria pathogen ID with loads

Top ophthalmic surgeons from our partners at The Sponsel Foundation visit annually to perform cataract & glaucoma operations

- 1 Nurse Practitioner (Chief of Nursing) - 2 Chief Clinical O cers + 1 Nursing O cer (Dept. Heads)

‣ 78 Health Providers & Support Sta - 6 Clinical O cers, 21 Nurse Midwives, 18 Patient Attendants, 8 Health Surveillance Assistants, 6 Laboratory Technicians, 3 Research & Knowledge Management, 14 Hospital Attendants, 2 Ambulance Drivers

ff

fi

ff

fi

ffi

ffi

ffi

CLI HOSPITAL: HIGHLIGHTS & IMPACT

09

CHILD LEGACY COMMUNITY HOSPITAL S U MM ARY O F FAC IL ITIES AND SUPPOR T IN G IN FR AST R U C T U R E HOSPITAL BUILDING

A

1 12

13

B

8 2

7

5

3

9

14

10

C 4

6 11

15

1

Mother’s Waiting Shelter (original)

2450 ft2

2

Mother’s Shelter Kitchen

400 ft2

3

Mother’s Shelter W.C.

350 ft2

4

Sanitation & Laundry

4650 ft2

5

Medical Warehouse

2300 ft2

6

Labor & Delivery

6200 ft2

7

Laboratory & Blood Bank

1100 ft2

8

Clinic/Outpatient Dispensary

5700 ft2

9

Surgical Ward & Operating Theater

4226 ft2

10

Adaptive Medical Space

(for various short-term clinics, etc)

2300 ft2

11

Maternity Ward

5950 ft2

12

Antenatal Clinic

1750 ft2

13

Eyes of Africa Clinic

1350 ft2

14

REDIN Center

(Research, EDucation & INnovation Center)

8100 ft2

15

Post-Operation Ward

5950 ft2

16

New Mother’s Waiting Shelter

6800 ft2

17

New Mother's Shelter Kitchen

800 ft2

18

New Mother's Shelter W.C.

750 ft2

INFRASTRUCTURE D

CHILD LEGACY MALAWI CAMPUS COORDINATES: -14 4’ 6.94” 33 28’ 19.94”

FOOTAGE

DETAIL

A

Powerhouse I

800 ft2 — battery banks, inverters, etc

B

Solar Field I

power generated shared across campus

C

Powerhouse II

3200 ft2 — battery banks, inverters, etc

D

Solar Field II

power generated for hospital use only

• 530 Acre Campus • Powered by 100% Wind & Solar Energy • 65,000ft2 Registered Community Hospital • 14 Sta

Houses

16

• Guest Housing Compound with Amenities • 8 Boreholes (direct aquifer access) Yellow Line: Campus Perimeter White Line: Detail Map Location

• 100+ Acres Integrated Farming

17

18

CLI HOSPITAL & INFRASTRUCTURE MAP

CLI HOSPITAL MAP

ff

CH L

ILD COYNAL CH EGERANATI LINT CHILD ILDACTIOYNAL H LEGACY C EGERNA INTERNATIONAL LINT

• 14 Commercial Aquaculture Ponds

10

11

2023 2024 2025 2026 ILD COYNA CH EGERANATI LINT

ILD COYNAL CH EGERANATI LINT CHILD ILDACOYNAL LEGACY CH EGERNATI INTERNATIONAL LINT

-$681,200

COMBINED NET INCOME:

-$510,600

COMBINED NET INCOME:

-$158,600

COMBINED NET INCOME:

-$23,600

COMBINED NET INCOME:

$90,500

COMBINED NET INCOME:

$152,300

‣ CHAM contract is expected Q3-Q4; offsetting CLI Hospital staffing expense ‣ Ministry of Health SLA in Q1-Q2; partially reimbursing CLI Hospital for health services ‣ First partial harvest of Commercial Macadamia & Bamboo is expected Q1-Q2; bulk sale in Q3Q4 ‣ First full year with CHAM & SLA income ‣ SIA becomes the first of CLI’s four cardinal programs to be 100% profitable ‣ SIA program generates >$200,000 in revenue to begin offsetting CLI Hospital expense ‣ Over two-thirds of Giant Bamboo has matured, enabling rapid regeneration for annual harvesting ‣ SIA program income surpasses $500,000

‣ CLI Hospital becomes 100% financially s u st a i n a b l e s o l e l y f ro m i n co m e generated on CLI’s Campus ‣ SIA program revenue surpasses one half million dollars annually ‣ Combined revenue from CLI Hospital & SIA may allow for additional outreach programs

2 019 2020

-$835,000

-$251,400

L E GE ND

$90,000 $30,100

-$707,000

HOSPITAL EXPENSE

-$228,300

SIA EXPENSE $133,800 $30,700

HOSPITAL INCOME SIA INCOME

2021

COMBINED NET INCOME:

‣ Hospital income higher from COVID19 wing— compensation from European Union

2 02 2

2022

-$770,800

‣ Operating Theater closes in May

2 02 3

2021

COMBINED NET INCOME:

‣ SIA’s Commercial Macadamia project begins

2 024

2020

-$966,300

‣ Hospital expenditure is high due to large volume of surgical patients & specialized medical staffing required for c-sections

2 02 5

2019

COMBINED NET INCOME:

ECONOMIC SUSTAINABILITY TIMELINE

202 6

FINANCIAL SUSTAINABILITY TIMELINE

-$846,000 -$146,200

$280,300 $30,700

-$870,000

-$147,600

$402,000 $105,000

-$905,000

$524,500

-$162,700

$384,600

-$933,000

$543,000

-$175,300

$541,700

-$1,003,000

$573,000

-$203,700

$724,200

-$1,031,000

$591,500

-$226,900

$818,700

FINANCIAL SUSTAINABILITY TIMELINE ECONOMIC SUSTAINABILITY TIMELINE

1211

CHILD LEGACY CAMPUS OVERVIEW RU RA L L I LO NGWE DIST RICT

|

-14 4’ 6 .9 4” 33 28’ 1 9.9 4”

CLI MALAWI CAMPUS OVERVIEW

12

ENDORSEMENTS OF CHILD LEGACY

ENDORSEMENTS OF CHILD LEGACY

FROM THE AFRICAN UNION:

“CHILD LEGACY INTERNATIONAL’S TIRELESS EFFORTS TO IMPROVE LIFE CONDITIONS OF AFRICANS IN THE RURAL AREA IS FAR-REACHING, IMPACTFUL, AND SUCCESSFUL.”

FROM THE NURSES & MIDWIVES COUNCIL OF MALAWI:

THE FORMER PRESIDENT OF MALAWI, THE HONORABLE DR. JOYCE BANDA:

“The Nurses and Midwives

“My own longterm goal to develop a growing and self-reliant people is

Council is pleased to

generously invite and strongly encourage you to be a friend and

endorse Child Legacy Hospital, as it is a model facility that all other health institutions in Malawi should emulate.”

mirrored by the Mission Statement of Child Legacy International. I supporter of this worthy institution.”

MALAWI MINISTER OF HOME AFFAIRS, THE HONORABLE DR. JEAN KALILANI:

“Child Legacy International has taken a strong leadership role in pioneering the use of sustainable energy… I commend this leadership in the field to establish a vital path for others to follow, so that together we can truly electrify our rural facilities.”

FROM THE MEDICAL COUNCIL OF MALAWI: WHO/TDR’S SIHI AFRICA COMMITTEE CHAIR, DR. ATUPELE KAPITA:

“The award that Child Legacy International received today is in recognition of the excellent work they are doing in rural communities in this country, particularly considering that 84% of Malawi population resides in the rural areas. We can proudly say that CLI is an integrated healthcare model comprised of a fully solar and wind-powered hospital, complemented by vocational training and sustainable agriculture programmes, providing employment to 300 plus Malawian people.”

PRESIDENT & CEO OF CHARITY NAVIGATOR, MICHAEL THATCHER:

“Only 7% of the charities we evaluate have received at least seven consecutive 4-star evaluations, indicating that Child Legacy International outperforms most other charities in America. This exceptional designation from Charity Navigator sets Child Legacy International apart from its peers and demonstrates to the public its trustworthiness.”

ILD C CH EGERANAT LINT

ILD COYNAL CH EGERANATI LINT CHILD ILDACOYNAL LEGACY CH EGERNATI INTERNATIONAL LINT

Child Legacy Co-Founder & CEO Jeff Rogers with African Union Ambassador to the USA Her Excellency Dr. Arikana Chihombori-Quao

“There are no clinics in M a l a w i r u n n i n g o ff o f renewable energy, yet Child Legacy International is powering an entire hospital without blackouts. They prove that renewable energy can make all things possible in rural Africa.”

ENDORSEMENTS ENDORSEMENTS

13 14

LEADERSHIP & CONTACT

WEBSITE

BOARD OF DIRECTORS U.S.A. OFFICE

Je M. Rogers Co-Founder, CEO, President

P.O. Box 805 Boerne, TX 78006

Karen Rogers Co-Founder, Vice-President

(830) 331-9428

Kevin Talley Chairman of the Board

www.childlegacy.org Join us in transforming the lives of families living in rural Africa! From our website, you can: ★ view/print/share ‣

info@childlegacy.org

this Sustainability Plan

w w w.c h i l d l e g a c y.o r g / 2 0 2 5 p l a n

‣ learn more about our programs ‣ view historical nancial statements ‣ sign up for our e-newsletters

Dr. Carl Conley

‣ make a secure donation

Mike Hockett Denny McGuire

SOCIAL MEDIA

Mike Navolio Mark Boling

@childlegacy www.facebook.com/childlegacy

Steve Eckhart Jeremy Rogers

@childlegacy www.twitter.com/childlegacy

Robert Merrick Dr. Dacia Napier

www.youtube.com/c/childlegacyorg

Derek Hill

PARTNER WITH US TODAY Our partners make it possible for Child Legacy International to improve lives and communities.

The majority of our work is funded by our individual and family partners’ private donations.

YOU CAN CHANGE A FAMILY’S FUTURE!

‣ As a registered 501(c)(3) non-pro t organization (EIN# 74-2630213), all contributions to CLI are tax deductible to the full extent allowed by law. ‣ Child Legacy International, Inc is committed to our donors’ security.

We will never sell, trade, or share your information.

Michelle Ernst

fi

fi

ff

LEADERSHIP & CONTACT

14

CHILD LEGACY INTERNATIONAL 501(c)(3) EIN#: 74-2630213

ECONOMIC SUSTAINABILITY PLAN LAST UPDATED 25 MAY 2021